Gov. Braun Extends Announced Second Extension of Gas Tax Suspension

Governor Mike Braun has extended Indiana’s fuel tax suspension through July 7, continuing a 62.5-cent-per-gallon tax break aimed at providing relief from elevated gasoline prices. The extension keeps Indiana’s average gas prices among the lowest in the nation, but it also temporarily reduces funding for state and local road projects. Braun said he supports using state reserve funds to back fill lost transportation revenue and has pledged that local governments will not bear the financial burden. State leaders estimate the tax suspension is reducing revenue by more than $140 million per month, though INDOT currently has reserve funds available to minimize immediate impacts on planned infrastructure projects.

Suspension Impacts Tax Revenue
The extension keeps Indiana’s average gas prices among the lowest in the nation, but it also temporarily reduces funding for state and local road projects. Braun said he supports using state reserve funds to backfill lost transportation revenue and has pledged that local governments will not bear the financial burden. State leaders estimate the tax suspension is reducing revenue by more than $140 million per month, though INDOT currently has reserve funds available to minimize immediate impacts on planned infrastructure projects.

What Comes Next 
IFFA remains in close communication with state agencies and will continue to provide updates as additional guidance becomes available. Members with questions about compliance, reporting, or pricing implications are encouraged to reach out directly.